Fighting so many taxes, bills and various other life costs, one must develop a good and reliable financial plan. In order to do that, it is a must to be well informed.
This article will present you with general information about insurance. It is a very good wealth-preservation tool as well as indispensable part of our financial plan. Having insurance, we protect our wealth against potential significant monetary losses. As an exchange for the guarantee that in a case of losing something we insured already, our insurance agency bills us with certain sum of money. We usually do not pay for insurance for something that would not cause us a hardship in a case we lose it. On the other side, if we take life insurance it means that in a case of our death, the compensation of our earnings will be given to our family, as a replacement of our monthly income. This type of insurance is most common for breadwinners because all other members of family depend on one’s income. In that case, the family would be provided and the loss would be reduced.
There are various types of insurance, depending on what we are to insure. Common ones are:
- Life insurance (in a case of death)
- Health insurance (covers costs of hospitalization, medication and surgery)
- Personal accident insurance (compensate us if some event cause our injury, disability or death)
- Vehicle insurance (provides us with compensation in a case of accident or theft)
- Home insurance (protects us against a loss or damage caused by fire, floods, thieves, etc.)
Some other types of insurance are: insurance for travel, burial, wedding, dog-bite insurance, crime insurance, aviation, terrorism, mortgage, plant, earthquake, crop, workers compensation and professional liability.
Once we decide the object of insurance, our homework is to find out what we are looking for. Consulting a professional advisor is always a good option. Advisor will help us with choosing the best insuring company as well as present us with the price, since we do not want to be underinsured nor overinsured. After choosing appropriate insurance company, be very careful with the contract you are to make.
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